The century-old Nordstrom department store chain gets a $3.76 billion bid from the Nordstrom family
Members of the Nordstrom family are teaming up with a Mexican retail group and are offering to take the department store retailer private at $23 per share cash, months after first expressing interest in a buyout
NEW YORK — Members of the Nordstrom family with the help of a Mexican retail group are offering to take the century-old department store private for $3.76 billion, months after first expressing interest in a buyout.
In a letter to the board of directors dated Tuesday, Erik Nordstrom said the Nordstrom family members own about 33.4% of the company's outstanding common stock and is willing to pay investors $23 for each share they own.
The Mexican retail group, called El Puerto de Liverpool, operates more than 300 stores in Mexico and is that nation's third-largest credit card issuer with over 7.2 million active accounts. It already owns approximately 9.6% of Nordstrom stock.
The offer represents a premium of nearly 35% to Nordstrom’s stock since March 18 when media reports about the proposed transaction first emerged, shares have rallied this year and traded for just above $23 on Wednesday.
“That the Nordstrom family have made an offer to buy the department store chain comes as no surprise. What is interesting is the $23 a share value which is pretty much the current price of the stock, said Neil Saunders, managing director of GlobalData. ”The lack of any real premium would, under normal circumstances, make the offer unattractive. However, as a family-run firm the dynamics are slightly different, and it will be up to an independent committee to determine whether this is in the best interests of the company and its investors."
Nordstrom last month reported sales growth of 3.4% in the second quarter, as sales in
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